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Exercise: Impacts on liquidity and solvency ratios A creditor wishes to assess the impact of the following transactions on the current ratio of CA/CL (liquidity)

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Exercise: Impacts on liquidity and solvency ratios A creditor wishes to assess the impact of the following transactions on the current ratio of CA/CL (liquidity) and total liabilities-to-equity ratio (solvency). A. Issuance of common stock for cash B. Issuance of bond payable for cash C. Early retirement of long-term notes payables with cash D. Pay off short term note payable

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